- Bitcoin risks a sharp drop to $49K if $104K support fails.
- Bearish divergence on weekly charts signals potential trend reversal.
- Holding $104K is essential to maintain bullish momentum.
Bitcoin (BTC) is at a pivotal juncture, according to a recent analysis by CryptoPatel on X. The chart, shared on October 18, highlights a potential bearish divergence that could spell trouble for the leading cryptocurrency.
If BTC breaks below the critical $104K–$105K support trendline, CryptoPatel warns of a possible crash, with downside targets at $73K and a drastic $49K. This level is described as a make-or-break point for the ongoing bull market, urging investors to protect their capital amid this uncertainty.
Potential Crash Targets: $73K and $49K
The analysis leverages technical indicators, including a bearish divergence on the weekly chart, where price highs are not matched by corresponding strength in momentum. This divergence, coupled with a declining support trendline, suggests weakening bullish momentum.
Historically, such patterns have preceded significant corrections, making this a moment of heightened vigilance for traders. On the flip side, holding above $104K could signal continued bullish momentum, potentially paving the way for steady green days ahead.
Market Sentiment and Risk Management Strategies
The crypto community’s reactions on X are mixed. While some echo the caution, others dismiss the prediction as overly pessimistic, with one user humorously suggesting a drop to $9K. This diversity of opinion underscores the speculative nature of crypto markets. Investors are advised to avoid impulsive decisions and wait for confirmation of the breakdown before acting.
Combining this technical analysis with broader market trends and risk management strategies will be key to navigating the potential volatility.Bitcoin hovers near $105K with a slight 0.7% dip, all eyes are on this critical support level. Whether it holds or gives way could define the market’s trajectory in the coming weeks.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
